Economic Developmenthttp://www.beehive.govt.nz/taxonomy/term/6279/feed
enExporters expand despite global challengeshttp://www.beehive.govt.nz/release/exporters-expand-despite-global-challenges
New Zealand’s exporters are signing new deals and improving the nation’s prosperity despite many global headwinds, Minister for Trade and Export Growth and Economic Development David Parker said today.
“Our exporters are among the most committed and innovative in the world. With Government support they are really proving that trade can be expanded even while there is unpredictability and volatility in the international markets,” he said.
Commenting on the Government’s international business development agency, New Zealand Trade and Enterprise (NZTE), as it conducted its annual report to a parliamentary Select Committee, David Parker said a co-ordinated approach to developing trade was working.
Highlights from NZTE’s annual report included:
Of the 12,000 exporters in NZ, 5500 are customers of NZTE including a high-focus portfolio of 700 companies;
Those 700 companies grew their international revenue by around $3.5 billion, rising 9.2 per cent more than the benchmark group of exporters. There was a notable rebound for companies in the food and beverage, manufacturing and service sectors;
The annual value of new trade deals was $1.7 billion, compared to a target of $1.5 billion;
Four international regions increased the value of export deals year on year, with East Asia returning an additional 23 per cent and the Australia Pacific region up 15 per cent;
NZTE has identified huge potential in the Māori economy and has a portfolio of 195 Māori customers, including 48 in the Focus 700;
NZTE was involved in 57 investment deals worth $800 million. The economic impact of these investments, including the forecast impact of wages, spending by suppliers and profits, was $2.3 billion, above the target of $2 billion.
A key focus for NZTE was the development of digital services for customers and an extension of services for small and medium enterprises.
In terms of collaboration, NZTE shares a growing number of its Focus 700 Customers with Callaghan Innovation, currently 453 compared with 361 at the end of 2017/18.
Across both trade and investment customers, NZTE’s strategy is to support the diversification of the economy and a move from a reliance on high volumes of commodities to the premium, high value end of the market. The Government also encourages NZTE to support a diversified global footprint of services, to hedge against market risk and volatility.
David Parker said the Coalition Government was determined to ensure that a NZ Inc approach to trade and investment ensured that all New Zealanders would benefit.
“I congratulate our exporters on their achievements. Their work ensures that our economy remains sustainable and robust.”
NZTE’s 2017/18 annual report can be found here.
Thu, 14 Feb 2019 12:44:32 +1300beehive.govt.nz107046Opening of Terracotta Warriors: Guardians of Immortalityhttp://www.beehive.govt.nz/speech/opening-terracotta-warriors-guardians-immortality
Ni Men Hao Ambassadors, my fellow MPs, Mayors, Good evening everyone and welcome to our visitors to New Zealand.
It is an honour to open Te Papa’s Terracotta Warriors: Guardians of Immortality.
This landmark exhibition offers us a rare opportunity to have an immersive encounter with an ancient and remarkable civilisation.
For more than 2,000 years, the warriors secretly guarded the tomb of China’s First Emperor Qin Shihuang with their discovery in 1974 one of the greatest archaeological finds of the 20th century.
The strong relationship that New Zealand and Te Papa have with Chinese cultural institutions – such as the Shaanxi History Museum, and the Chinese Government, has made this exhibition possible, and I would like to take this opportunity to thank everyone involved, including our Chinese partners.
I would especially like to thank the Te Papa team for the work they have done in developing a programme of events around the exhibition, including an outstanding education programme that will begin in the new school year.
The New Zealand Government is proudly supporting this exhibition through the Major Events Development Fund, with $500,000 to support the delivery of the event and, in particular, to realise the leverage and legacy opportunities it provides.
As the Prime Minister has stated, New Zealand’s relationship with China is one of our most important and far‑reaching. It is a relationship based on mutual benefit and mutual respect.
Last month I led New Zealand’s participation in China’s inaugural International Import Expo in Shanghai, involving over ninety New Zealand companies. China’s importance to New Zealand, in turbulent times for global trade, is also why we’re upgrading our FTA and cooperating on WTO reform, on which I had a very good discussion with Vice Minister of Commerce Wang Shouwen.
But this important relationship is about much more than selling things to each other. And today’s exhibition is a great example of our cooperation in other areas. The Terracotta Warriors exhibition is the cornerstone of the New Zealand programme for the China-New Zealand Year of Tourism in 2019. The Year of Tourism will focus on increasing the quality of experience for tourists both ways.
Building ties through tourism, education, and other links can only encourage greater understanding between our people, and of course add value to New Zealand’s economy.
China is New Zealand’s second largest, and fastest growing, visitor source. And New Zealanders’ fifth most visited destination.
The exhibition is also a celebration of New Zealand’s Chinese heritage, with the inclusion of a specially commissioned multimedia installation by Chinese New Zealand artist Kerry Ann Lee – Return to Skyland.
The Year of Tourism goes in both directions. I hope this exhibition encourages more New Zealanders to start or continue their journey to engage with and understand China, one of our most important partners.
It is a privilege to have these taonga of an ancient civilisation on our shores.
Thank you all for attending this special opening event tonight and please enjoy the exhibition.
Thu, 13 Dec 2018 18:49:49 +1300beehive.govt.nz106700Government construction projects will support skills traininghttp://www.beehive.govt.nz/release/government-construction-projects-will-support-skills-training
Government agencies are being encouraged to take skills and training into account when contracting for large construction projects, rather than wait for it to become mandatory.
The Ministry of Business Innovation and Employment (MBIE) is currently working to make skills and training development a requirement for construction procurement projects valued at over $10 million and this will likely take effect next year.
However Economic Development Minister David Parker and Building and Construction Minister Jenny Salesa have agreed that Government agencies should take the lead in setting good construction procurement practice as soon as possible.
They are writing to chief executives of 137 government departments and agencies advising them not to wait until it becomes a requirement.
“While central government contracts only make up about 18 per cent of construction activity, government should take a leadership role,” David Parker said.
“There's no ‘one size fits all’ solution to the delivery of complex infrastructure, but there are good practices that can be more consistently applied.”
The chief executives are being encouraged to follow the Construction Procurement Guidelines, and to consider adding skills and training components as requirements in new construction contracts.
“Government agencies can use their capital investment to find ways to partner more effectively with the construction sector to deliver better value, and better outcomes, for New Zealand,” David Parker said.
The voluntary Construction Procurement Guidelines were developed in conjunction with the industry in 2015 and provide direction on areas such as considering whole-of-life costs and outcomes and the appropriate allocation of risk.
Jenny Salesa said the Government has had a number of discussions with stakeholders in the construction sector about how to work together better to improve long-term outcomes.
“They have told us that consistent use of these Guidelines will be positive for the sector as a whole.
“We have heard there is also a tendency for agencies to favour the lowest cost bid, which typically favours suppliers who do not invest in training and developing their workforce.
“This has been a long-standing issue that has contributed to a shortfall of about 30,000 construction workers. Creating a more sustainable construction sector for New Zealand means we need to invest in workforce development and training,” said Jenny Salesa.
The Government Rules of Sourcing, which are used in conjunction with the Guidelines, will be updated to include a new requirement for agencies to provide evidence that the Guidelines have been considered. This is expected to come into effect next year.
Notes to Editors:
The New Zealand Government spends approximately $41 billion each year on procuring goods and services. This is about 18 per cent of New Zealand GDP.
Construction Procurement Guidelines are available at: https://www.procurement.govt.nz/procurement/specialised-procurement/construction-procurement/
The Government Rules of Sourcing are at:
https://www.procurement.govt.nz/procurement/principles-and-rules/government-rules-of-sourcing/
Thu, 06 Dec 2018 16:35:08 +1300beehive.govt.nz106552America’s Cup infrastructure plans advancehttp://www.beehive.govt.nz/release/america%E2%80%99s-cup-infrastructure-plans-advance
The Government has agreed to further funding for America’s Cup infrastructure as certainty about the number of challengers moves a step closer.
Economic Development Minister David Parker says Cabinet has approved additional funds of $22.5 million, following higher than forecast costs for wave breaks and dredging work.
This follows the announcement on Friday by the Royal New Zealand Yacht Squadron and Emirates Team New Zealand (ETNZ) that an additional eight notices of challenge had been received by the deadline.
An acceptance process will determine how many challengers will compete in the Prada Cup alongside Luna Rossa, American Magic and INEOS Team UK.
The extra funding is subject to Auckland Council on Thursday also agreeing to increase its contribution. It would take the Government’s contribution to the Auckland waterfront development to $136.5 million.
“This investment will ensure we deliver a great regatta in 2021, and negotiating to remove the tank farm off Wynyard Point will help revitalise the waterfront,” David Parker said.
The 2021 event has been estimated to bring in an estimated $550m to $1 billion to the economy, return significant tax income to the Government and provide wonderful opportunities to showcase our country, people and innovation.
Many of the people who developed ETNZ’s carbon fibre technology have gone on to develop carbon composites for Rocket Lab rockets and new technology from the R and D programme has flowed through to the general marine industry.
“The development will provide a legacy for Auckland and for New Zealand for years to come. The Government’s investment represents a significant contribution to the major, multi-billion dollar rejuvenation of the Auckland waterfront that will be enjoyed by the city and visitors for generations – and by future America’s Cup defences.”
He said a detailed design and costing process for the Wynyard-Hobson infrastructure had been completed by Wynyard Alliance contractors as is standard for construction projects in order to finalise cost estimates against budgets.
It is possible that if the final number of challengers is five or less, then savings can be made by opting to base them all on Wynyard Wharf and dispensing with plans to extend Hobson Wharf.
No final date has been set for the number of challengers to be determined. But ETNZ CEO Grant Dalton has said the organisers want to act quickly to tell the Auckland Council and Government the total number of teams.
Tue, 04 Dec 2018 05:00:45 +1300beehive.govt.nz106522Two land restoration projects given the go-ahead under One Billion Treeshttp://www.beehive.govt.nz/release/two-land-restoration-projects-given-go-ahead-under-one-billion-trees
Two projects aiming to plant 247,000 native trees and develop skills and employment, as part of the One Billion Trees programme, were announced today by Regional Economic Development Minister Shane Jones and Conservation Minister Eugenie Sage.
The Provincial Growth Fund (PGF) will provide just over $2.2 million to plant 247,000 native trees in two areas - Punakaiki on the West Coast and Te Waihora/Lake Ellesmere in Canterbury.
“Planting these native trees has multiple benefits. It’s good for the economy and for our regional communities through creating jobs, providing skills training and enhancing ecological tourism opportunities in the regions.
“It will also help us meet our climate change objectives and provide conservation benefits as we restore native forests and create habitats for threatened birds and other native wildlife,” Shane Jones said.
“The programmes will include a number of ecological and pest control initiatives which will involve a range of partners across local communities, government, volunteer groups, and landowners. It will be a real community approach.
“Each initiative focuses on developing skills and employment. In Punakaiki, planting will enable an expansion of the Conservation Work Skills programme for school leavers and unemployed youth who will gain work skills and improve their employment prospects. The restoration will benefit tourism and support and enhance a whitebait breeding ground.
“Restoration programmes like these are a fundamental part of the One Billion Trees programme, not only to help us reach our tree planting target over the next ten years but as a way to support a community’s social, economic, and cultural wellbeing,” Shane Jones said.
Eugenie Sage said that at Te Waihora/Lake Ellesmere 34 hectares of kahikatea forest would be restored by the Department of Conservation on sites adjacent to the lake.
“Te Waihora is one of the country’s largest coastal wetland areas. The lake’s shoreline was once covered with native forest. Now there’s barely any kahikatea swamp forest left in the whole of Canterbury so restoring kahikatea forest on the shores of Te Waihora/Lake Ellesmere has huge conservation and cultural value.
“Te Waihora is a taonga and very significant site for Ngāi Tahu, including Taumutu, Wairewa and other papatipu rūnanga. The planting project adds to the work Ngāi Tahu are doing to document, protect and restore the cultural and ecological values of the lake. The new forest will create habitat for native birds and fish and improve the health of the lake,” Eugenie Sage said.
“Punakaiki is the only place in the country where tāiko, the Westland petrel, breeds.
Planting native trees on the Punakaiki coastal flats should help increase the population of this at-risk native species by enhancing its breeding habitat.”
Notes to editors:
Planting at Punakaiki on the West Coast and Te Waihora/Lake Ellesmere is underway this spring.
Punakaiki Land Restoration – West Coast
The PGF will provide $1.209 million over three years, enabling Conservation Volunteers NZ to lead the planting of 179,000 native trees. This will add 35.8 hectares of native forest at Punakaiki.
Conservation Volunteers NZ’s partners for the planting are DOC, Ngati Waewae and the local community.
Environmental benefits include:
the restoration of the area’s wetland ecosystem
enhancing the location of the only known breeding colonies for the westland petrel
restoring the nationally significant Bullock Creek Polje (a large flat floored depression in a Karst landscape), which is the only one in the country.
supporting and enhancing a whitebait breeding ground
supporting the area’s biodiversity and enhancing it for locals and tourists to enjoy.
Economic benefits include:
job creation through the planting programme
enabling youth training and employment pathways through a partnership with the Ministry of Social Development
supporting Conservation Volunteers New Zealand to increase the number of native seedlings grown at its nursery
Te Waihora/Lake Ellesmere Restoration - Canterbury
The PGF will provide $1.06 million, over three years to enable DOC to lead the planting of 68,000 native trees on the Te Waihora/Lakes Ellesmere shoreline. This will create 34 hectares of new kahikatea forest by the lake. Te Waihora/Lake Ellesmere is one of the country’s largest coastal wetland areas.
Economic Benefits include:
creating jobs through planting.
providing skills training and creating employment pathways for school leavers and unemployed youth
Environmental Benefits:
Restoring kahikatea forest, a very rare type of native forest in Canterbury
supporting restoration of a degraded wetland ecosystem
Mon, 05 Nov 2018 09:30:00 +1300beehive.govt.nz106164The Economy in Transitionhttp://www.beehive.govt.nz/speech/economy-transition
Notes for speech to the Wellington Chamber of Commerce’s “Beehive to Business” breakfast meeting.
16 October 2018
Thank you for having me here today.
This month marks the first anniversary of this coalition Government.
We came to office promising to rebalance the economy away from its excessive reliance on speculation and immigration towards productive investment.
In the words of the deputy prime minister, to reject the notion that the modified status quo would do.
And we are on the way.
Today I want to take this opportunity to recap the measures we have put in place and draw together the strands of our plan for a more sustainable, productive and inclusive economy
When I asked the Prime Minister for the Economic Development and Environment roles I was not simply choosing
the areas that interest me. Though of course they are fascinating. I chose them because I thought we can and will make a difference to improve the lives of New Zealanders.
Together with my Trade and Export Growth portfolio they are areas that must work together to bring about some of the key changes we want to see in New Zealand.
Changes that will make our economy more productive.
Changes that will ensure economic growth is within environmental limits.
Changes that are inclusive, benefitting all New Zealanders.
Changes that will speed the transition from volume to value and boost the creation of higher paid jobs.
Let’s begin with what’s going well. Then move on to the international economic challenges we face. And finally I’ll set out some of my thoughts on how we can respond to those challenges, linking
up across government to make a Just Transition to the future for New Zealand we want to see.
Much about our economy is going well
So, to begin, I’m pleased to say that our economy today enjoys many strengths.
On traditional measures, the key macro indicators are good.
Inflation remains low and steady.
Economic growth forecasts are solid, averaging around 3% and the June quarter came in at 1 per cent.
Unemployment is low, at 4.5%, and projected to fall further towards 4%.
There are signs that real wages are improving.
Government debt as a proportion of our economy is among the lowest of any developed country, at close to our 20 per cent of GDP target, and coming down thanks to our ongoing surpluses.
Interest rates are low and set to stay low for some time.
We are boosting infrastructure spending, injecting $1 billion a year into the regions through the Provincial Growth Fund and in our first budget we announced the $5.5bn Families Package targeted at low-income New Zealanders.
Together those measures will lift consumer spending and stimulate the real economy.
We are planning for our future, having restarted contributions to the Super Fund.
To help businesses invest and innovate we have introduced the R and D tax credit and have set money aside for a Green Investment Fund and we are in the midst of important tax review by the expert group led by Sir Michael Cullen.
There has been a lot of attention from the Opposition on headline business confidence surveys that frankly do not reflect the economic reality.
It is what Prime Minister Jacinda Ardern has described as the “business confidence paradox”. Most commentators have noted the political dimension of them as have a number of economists. They reflect “sadness” of some of those disappointed about the outcome. They hold a mirror up to the political leanings of respondents rather than the economic reality.
They are proven to be a very poor predictor of the actual performance of the economy, as most economic commentators also acknowledge.
As the Prime Minister puts it: When you line up business confidence with key economic performance measures over the last two governments there appears to be an inverse relationship between business confidence and the actual performance of the economy.
For instance, average business confidence scores under the Clark/Cullen Government were much lower than the Key/English Government, despite Clark and Cullen delivering higher average growth, lower unemployment, lower debt, larger surpluses and stronger wage growth than their successors.
Since World War II growth rates have on average been higher under Labour. And for those with a long memory, Mr Muldoon was not from Labour.
The Prime Minister has put the low confidence surveys down to “uncertainty” and has moved to address those through a clear statement on workplace reforms and the appointment of a Business Advisory Council to complement the consultations we are undertaking with small and medium sized businesses.
The current macro indicators I have already mentioned point towards a positive picture. As Reserve Bank governor Adrian Orr said in August, “all signals are green for business investment”.
And as Sky City Chair Rob Campbell said recently said: “This is a great place to open and operate a business. Negativity is for those who stand on the side lines watching and commentating.”
And we have a good platform for future growth.
We enjoy strong institutions, clear legislation and effective regulation. That underpins long-term economic success by ensuring fairness and ease of doing business. In February, we were once again named the least corrupt country in the world by Berlin-based Transparency International. Our democracy is vibrant and our civil society is strong. In the longer term these are key to adherence to the rule of law, including contractual certainty, investment and property rights.
Our neighbours in the Asia-Pacific region have some of the fastest growing economies in the world, and we are growing strong trading links with them. Technological advances including in e-commerce are beginning to overcome some of the challenges of New Zealand’s distance from key markets – as we move further into ‘weightless’ areas where distance is no object. Look at the success of Xero and Weta Digital, for example.
And, what’s more, New Zealand has laid down the foundations of future economic growth.
We have backed some of the key technologies that underpin a modern economy, structural separation of Telcos by the last Labour Government plus broadband roll-out by Steven Joyce are a case in point. Investment has flowed to the Telco sector, which is a prerequisite to success for a modern economy.
We are fully committed to respond to the opportunities and challenges of our changing world. We are investing in innovation – in areas like robotics, sensors and Artificial Intelligence. For example the recently announced Endeavour Fund round put substantial efforts into automation in orchards, vineyards, medical imaging, drug development, superconducting magnetic materials, smart sensors and a host of other research with strong economic potential.
The innovation cycle has improved hugely since the Knowledge Wave conference but is held back by gaps in the capital cycle – an issue I will return to on another day.
There are domestic economic challenges
But for all these strengths, of course we have challenges too. Let’s look first at some that are domestic.
Firstly, productivity and productivity growth are low by international standards. Our economic growth has been too dependent on high levels of net migration and house price inflation driving consumption and demand for extra infrastructure. And too much of our capital has been skewed towards speculative asset classes, like rental property, rather than growing new points of comparative advantage.
Paul Conway at the Productivity Commission correctly notes that these factors have contributed to low per capita capital density in our productive sectors. This in turn is a root cause of poor technology transfer and low economic complexity. While some progress has been made, our exports remain focused on too few products and too few markets.
Low capital density in our productive sector is one of the reasons exports fell from 30 per cent to 27 per cent of GDP from 2008 to 2017 despite the last government’s stated ambition to lift them to 40 per cent of GDP.
Secondly, some of our growth has brought growing environmental and social impacts. Polluted rivers and pressured infrastructure are not sustainable. Agriculture and tourism are vital parts of our economy, but business-as-usual growth in these areas is now reaching natural and social limits.
Thirdly, even though our economy has grown overall, per capita growth has been modest and some New Zealanders have been left behind. There are disparities in growth across regions and between groups in society. Many of our people are unable to buy a house or participate fully in the life of their communities. Home ownership is the lowest since the 1950s rents have increased markedly relative to income and there is the shame of homelessness.
There are international economic challenges.
Of course the job of Government is never finished.
It’s not just in New Zealand itself where we face challenges. There are global challenges too.
In the aftermath of the Global Financial Crisis, a decade of aberrant monetary policy in some countries has produced unusual consequences. Negative interest rates, asset price inflation, and growing inequality.
Discontent about growing inequality, multi-national tax avoidance, limited employment opportunities and, higher housing costs are causing political instability. A number of democracies are electing anti-trade governments. A rising tide of protectionism is bringing with it emerging trade wars, creating risks for our exporters. In many countries there is growing public scepticism about trade. The very system of rules-based world trade is facing serious challenges.
Traditional industries are being disrupted by new digital technologies, creating uncertainty for those whose jobs are disrupted. The nature of work is being affected by Artificial Intelligence, machine learning and automation. New plant-based alternatives to milk and synthetic meat technology are advancing all the time, and consumer preferences are changing.
In the manufacturing sector, patterns of production are changing, with offshoring and now reshoring in some cases.
Growing global action on climate change means that carbon-intensive industries, including agriculture and long-haul tourist travel, may face significant challenges in the future if we do not innovate.
We are adjusting course
So, in the face of all these challenges, domestic and international, we need to adjust our course.
The changes we are already making are addressing these challenges and creating real opportunities for New Zealand. Through levers that only government can pull, we are stimulating the productive economy.
It’s a tremendously exciting time, as the confluence of computing power, sensors, robotics, positioning systems, big data and the internet of things mean we are in the midst of the fourth industrial revolution.
I believe we have the vision and talent - both in the current coalition government and in society - to position our country for the future.
While Rocket Lab’s Peter Beck may disagree it’s not rocket science. There is no new principle of economics. At one level it is simple. To grow points of comparative advantage we need to invest money and commit people to the task. And as the saying goes, people follow the money. To succeed we need to increase investment in those sectors. We can’t magic up the money. To succeed we need to re-orient incentives so that investment goes into productive rather than speculative asset classes. Investing more – in both physical assets and knowledge – will help to boost productivity. More innovation will help us to develop more world-leading technologies that will compete in the global market place and improve competition of existing sectors. We will build on existing successes, and extend those into other areas.
The race is on. Exponential growth in the commercialisation of new ideas from the fourth industrial revolution will turn into the law of diminishing returns. It is the duty of business and government to maximise our share of these opportunities, now.
Some, like Rocket Lab, will arise from the brilliance and drive of a few individuals.
New Zealand’s offering of goods and services need a higher degree of economic complexity, so that they can better compete in the global marketplace. We also need modern trade agreements to lower barriers and maximise our access into global value chains.
Responding to the challenge of climate change will both help cure the environmental ill and create opportunities as we advance.
And success will not be measured by GDP alone. Human, social and environmental outcomes also matter. Which is why we are moving towards a wider ‘wellbeing budget’ approach. We are building an economy that is more productive, sustainable and inclusive.
And of course we are not starting from scratch.
The underlying competencies needed for the economy we want exist here today. We have had close to two decades of good telecommunications policy. We have an export IT industry, high-tech manufacturers, investment in engineered wood products, the beginnings of an encouraging response to the Kiwibuild challenge in terms of factory house production, a nascent space industry, a thriving film industry, and nearly all the new off-farm investment in food and beverage is in adding value.
But we want more. There are four main parts to our plan for growth.
Firstly, we need to strengthen the foundations of our future success, including developing new points of comparative advantage.
Secondly, in the largest areas of our export economy today, we need to add more value to volume. We also want businesses to reduce their adverse impact on the environment. We believe this will also add value via both efficiency improvements and enhance the brand we rely on for premium prices.
Thirdly, we need to leverage new opportunities - many of which are adjacent to our existing key sectors. That’s important to lift productivity and exports, and to enabling higher-value land use in New Zealand.
Fourthly, we need to back the industries of the future, positioning New Zealand as a hub for world-leading innovation, linked into global value chains
I will now take each of those four points in turn.
We need to strengthen the foundations of our future success
Firstly, strengthening the foundations of our future success.
On innovation, we aim to lift investment in Research and Development from today’s patently inadequate figure of just 1.3% of our economy, to at least 2% in 10 years. That’s a 50 per cent increase - a real challenge to achieve but worth it to lift productivity. Part of that will be delivered directly through government investment. But the key lift needed is more R and D investment by the private sector. This will be stimulated by our new R and D tax credit.
Its main elements are:
A tax credit rate of 15 per cent.
A $120 million per year cap on eligible expenditure
A minimum R&D expenditure threshold of $50,000 per year.
A broad set of eligibility criteria applied to all private sector entities plus State-Owned Enterprises, industry research cooperatives (including levy bodies) and minority-owned subsidiaries of Crown Research Institutes, Tertiary Education Organisations and District Health Boards.
A definition of R&D that ensures the credit can be accessed more easily across all sectors, including the technology sector.
We are also looking at allowing refunds to start-ups that are not yet profitable.
The R and D tax credit is a tax cut for businesses that invest in R and D. It totals more than $1bn over four years. It’s a major initiative.
We are also establishing a new Green Investment Fund to make investments that both reduce greenhouse gas emissions and provide a financial return. The Fund will receive a $100m capital injection from Government and will operate independently.
Further, I am keen to ensure our early stage capital markets are strong enough to support the growth of our innovative firms. We will not, and would not want to stop, all globalising companies selling down or selling out to overseas investors. But our ambition is to support our capital market so that they are not driven to those outcomes or driven to exit too early by the inadequacy of our early stage capital markets.
On skills, we will better match education and training to the changing needs of the economy. We want everyone to have access to further and higher education. Not just for school leavers, but also for mid-career re-training. This is an important part of the social contract as we face the digitalisation of so many jobs. We have already made a start, with no fees in the first year for everyone starting tertiary education or training for the first time and two years for apprenticeships. Firms need access to high-level skills, including management and entrepreneurship, to thrive in a competitive world. So we are adjusting our immigration policy to better target the skills we need, while trimming some of the immigration which we do not think has been in New Zealand’s best interests. Treasury analysis shows some immigration has adversely affected wages in lower paid sectors, adding to inequality.
And the work programme of the Tripartite Future of Work Forum includes a Review of Vocational Education and Training; improving the quality of careers advice at the school and post-school level; collective action on the Skills Shift in Manufacturing initiative; and implementing the Digital Skills for a Digital Nation report.
On infrastructure, Cabinet has approved a new 10-year plan for transport. This makes record investment in the roads, rail and public transport for our growing regions and cities. That will help people get to work, improve supply chains and reduce costs, supporting businesses to expand.
On ease of doing business, New Zealand already has an outstandingly business-friendly environment. We will build on that, and support it with effective regulation. Some of it seems mundane like enabling e-invoicing, but has important efficiency gains for business. We designed regulation that helps, rather than hinders - like regulating but not smothering the space industry. This has enabled a new industry.
As a small, innovative country, we have helped Rocket Lab gain first-mover advantage, to operate the world's first private orbital launch facility in Mahia, right here in New Zealand. We will continue to develop proportionate regulation to support the growth of disruptive technologies, like that, as they emerge.
We are promoting growing international links in our science and innovation systems, especially with other small advanced economies. We are working to attract more high-quality inward investment, for the likes of forestry and forest processing, at the same time as in our the first phase of our revision of Overseas Investment rules we banned foreign buyers to ensure our housing market for existing homes is a New Zealand market, not an international one. That change takes effect new week.
Today I am announcing the second chapter in our rewrite of the Overseas Investment Act.
Our aim is reduce complexity, improve investor certainty and cut unnecessary red tape, while ensuring investments are consistent with New Zealand’s national interest.
We know that more can be done to simplify the Act for those making productive investments in our economy, while adequately protecting our most sensitive assets, including our pristine land which is the envy of the world.
Capital is globally mobile and competition for investment is fierce. This review will ensure New Zealand remains an attractive destination for beneficial, long-term foreign direct investment.
But it will also examine ways to ensure prospective foreign investments are consistent with New Zealand’s national interest.
Many of our closest allies have the ability to block investments that are inconsistent with their national or security interests in a way that we cannot.
In a time where the international rules based order is coming under pressure, we must test the appropriateness of our arrangements and whether more should be done to protect the interests of all New Zealanders.
The Government will consult widely on options for reform. Public consultation will take place in the first half of 2019 and legislative reform is expected to be completed by mid-2020.
Our Trade for All policy is now being implemented in consultation with the public. I see that as a crucial element in our push back against the anti-globalisation sentiments which are feeding protectionism abroad.
Diversifying our export markets and improving our export earnings requires market access, and we have a very active programme negotiating new – and upgrading existing – trade deals: the CPTPP, the EU, RCEP, Britain after Brexit, the Singapore and China upgrades and the Pacific Alliance.
We are confident that these initiatives will help the private sector succeed economically for the benefit of business, owners, employees and the country.
We need to add value to volume in our biggest existing sectors
Secondly, we need to build on our existing economic strengths.
That means adding value to volume in key sectors like agriculture and tourism. We will work with businesses and the trade unions to tackle barriers to growth while operating within environmental limits. For example, that means continuing to extend our primary production into higher-value food, beverage and timber products while also moving towards more sustainable land use to protect our rivers and to protect our brand. Already, in 2017, exports of processed food were valued at $4.7bn, with year-on-year growth of 12%. Exports of infant formula alone grew by more than 59% in the year to June 2018 to reach $1.24 billion.
Our actions in this area will include helping businesses to invest in R&D and ensuring that our trade policy objectives promote high-value exports. The new $40 million a year Sustainable Food and Fibre Futures Fund, launched in August, will help the sector move from volume to value. The Free Trade Agreement under negotiation with the European Union offers a major opportunity to get more of our high-value goods and services into one of our key markets. We are continuing to promote New Zealand around the world as a high-value destination for travel. The new Visitor Levy will ensure that tourists make a fair contribution to the cost of the infrastructure they use.
We need to open up opportunities in adjacent areas
Thirdly, we will leverage opportunities adjacent to some of today’s key sectors.
We will work with businesses and innovators to identify opportunities in areas linked to our existing strengths. That will include the emerging areas of precision agriculture, sensor technology and on-farm robotics.
These are important examples of where New Zealand can lead, in ‘Industry 4.0’, the growing trend towards automation and data exchange should be harnessed, not avoided. We are working with the Manufacturers’ Network on initiatives that will support our wider manufacturing sector to adopt new and emerging technologies and to grow the skills base within the sector.
Our current biological economy could be the basis for future specialisations in plant-based foods, as well as nutraceuticals and pharmaceuticals. Our excellent base of health research could extend our small but fast-growing and high-value medical technology sector. Our world-class data assets, such as integrated data infrastructure, could enable us to become a world hub for advanced social research. Our already large renewable energy sector could be a platform for clean energy specialties.
In these areas, your Government will work with businesses and labour to improve growth. We will make use of multiple policy levers - including tailored domestic regulation, the right incentives to invest, trade policy and funding. Our initiatives reach beyond cities to unlock the potential in our provinces. Over three years, the $3bn Provincial Growth will enhance these sorts of economic development opportunities in regional New Zealand.
We need to support the growth areas of the future
Fourthly, we will move quickly to capitalise on the creativity of our entrepreneurs.
Of course, we can’t expect a country of New Zealand’s size to be at the forefront in all new technologies. But to use Sir Paul Callaghan’s phrase, some of our key strengths could lie in the ‘weird stuff’ – important niches where there is not yet any other obvious global frontrunner, and where we have a bit of a head start. Digital film services, satellite launch services and medical devices are cases in point.
We will work with, businesses and science leaders to identify the sectors where New Zealand’s unique features position us well for new and disruptive technologies. Then we will reach out to innovators and start-ups in New Zealand and overseas. Call it an example of cluster theory if you like. To us it is pragmatism.
We will connect policy makers across agencies with transformative technologies and emerging sectors. We will offer fast-paced, responsive government engagement in the most promising of these market-led opportunities. Support for these ‘pathfinders’ will include agile regulation, funding and, where appropriate, greater willingness to trial new technologies within the government’s own systems.
Conclusion
So, in summary, we are implementing our vision to move New Zealand’s economy from its reliance on property speculation and immigration by encouraging productive investment to grow our points of comparative advantage. While our economic foundations are sound, we and the rest of the world face significant challenges. We always will. We also have exciting opportunities. By moving from volume to value and building on our comparative advantages, we aim to build an economy that is more productive, more sustainable and more inclusive. Only by achieving all three will we be able to ensure that growth benefits everyone.
I have outlined some specific initiatives that we have implemented and will continue to develop. We all know that to be a successful nation, government, business owners, workers and regions all need to work together.
We have a fine leader, who is drawing New Zealanders together and making us proud of our place in the world.
Her campaign slogan was “let’s do this”. We have started. With your help we can do even better.
Thank you.
Tue, 16 Oct 2018 08:24:01 +1300beehive.govt.nz106074New chair appointed to the New Zealand Story Advisory Boardhttp://www.beehive.govt.nz/release/new-chair-appointed-new-zealand-story-advisory-board
Economic Development Minister David Parker today announced the appointment of Paul Brock as the new chair of the New Zealand Story Advisory Board.
Paul Brock was the Kiwibank Group Chief Executive from 2010 to 2017. He has a strong background in governance, management, brand development and marketing.
“Paul will add tremendous value to the NZ Story project as it works to increase the benefits to New Zealand from export trade,” David Parker said.
“I would also like to take this opportunity to thank the outgoing Chair, Cameron Harland for his great contribution to the board over the last four years,” David Parker said.
Paul Brock’s appointment is for a three year term effective from 1 October 2018 to 30 September 2021.
Notes to editors
Paul Brock was part of the creation of Kiwibank in 2001, when he was responsible for driving marketing, product, pricing, and brand options for the board of NZ Post. He is based in Wellington.
Cameron Harland is the CEO at CricHQ, and is a director of Weta Workshop and TVNZ Ltd. He was appointed to the NZ Story Advisory Board until April 2020 but is standing down due to changes in other work commitments.
The NZ Story Advisory Board ensures there is a coordinated private/public sector approach to the development of an overarching “New Zealand Story” and the protection of the New Zealand brand. The Board has four private sector members (Paul Brock, Dame Julie Christie, Richard Te Hurinui Jones, and Stephen M. Smith) and six ex-officio departmental Chief Executives as members. For more see https://www.nzstory.govt.nz/
Thu, 04 Oct 2018 11:55:26 +1300beehive.govt.nz105784America’s Cup court ruling vindicates processhttp://www.beehive.govt.nz/release/america%E2%80%99s-cup-court-ruling-vindicates-process
The Environment Court has today granted the resource consent for the 36th America's Cup bases in Auckland and the associated infrastructure and activities.
Economic Development Minister David Parker welcomed the court’s decision, saying it showed the Government was right not to by-pass the process with special legislation as some had argued.
The consents were lodged by Auckland Council’s investment arm Panuku in April using the direct referral process allowed for under the Resource Management Act.
This process allows for the application to be sent straight to the Environment Court, rather than being heard first by the relevant Council. That streamlines the decision-making process for large scale and complex applications, saving time and costs for applicants and submitters.
“This has demonstrated that the direct referral process does deliver these benefits,” David Parker said.
“I was approached in my role as Environment Minister to consider special legislation to ensure that this important project could proceed.
“The success of this process, and the ability of all parties to be heard (the Court received 83 submissions), and reach agreement shows that no such over-bearing intervention was required.”
The Court decision was delivered at least four weeks earlier than expected, while the hearing of evidence took just one and a half days compared with the expected two weeks.
David Parker said this reflected an enormous effort by Panuku working with submitters to reach substantial agreement on contentious areas, the contribution of mana whenua and the work of the Court itself.
“Throughout the process I have been focused on ensuring that Auckland and New Zealand can host a world class event, while balancing economic, environmental and social outcomes, “ he said.
“Limiting the extent of harbour incursion, and ensuring an enduring legacy has been a key focus. I am continuing to work with officials to ensure that any loss of environmental amenity can be appropriately taken into account in resource management decisions.
“This is an important step towards a successful America's Cup event for New Zealand and Emirates Team New Zealand.”
Tue, 25 Sep 2018 18:32:57 +1200beehive.govt.nz105652Trade and investment focus of Sydney talkshttp://www.beehive.govt.nz/release/trade-and-investment-focus-sydney-talks
Minister for Trade and Export Growth David Parker heads to Sydney tomorrow to promote New Zealand’s trade and investment interests.
The two day visit includes meetings with the Australian and New Zealand branches of the American Chamber of Commerce as well as with companies doing business and investing in New Zealand.
David Parker said he will take the opportunity to stress New Zealand’s commitment to open rules-based markets and to outline the Coalition Government’s economic agenda.
“As a small trading nation that relies on access to markets and foreign capital, we have worked closely with our partners in the Asia Pacific to promote trade and economic connectivity.
“This work is more important than ever as the world faces the economic danger of a rise in protectionism.”
He will also seek to expand Australian and American investment by reaffirming that New Zealand remains open to trade and to investment in our businesses and forests.
“We already have strong investment ties with Australia and the US. The satellite launching business Rocket Lab is a great illustration of the sorts of innovative links we want to encourage and expand.”
His itinerary includes a meeting with venture capital funds.
“As last week’s 1 per cent June quarter GDP figure showed, New Zealand has a strong and growing economy. A wide range of free trade agreements, pro-competitive regulation, an efficient tax regime, and an open political system make it a great place to do business,” David Parker said.
Rating agency Moody’s last week confirmed New Zealand’s Aaa rating with a stable outlook – the highest score it is able to give – and said it expected New Zealand’s growth to be stronger than other Aaa-rated countries in the next few years.
“The Government’s changes to the overseas investment regime aim to channel foreign investment into the productive sectors of the economy rather than into speculative sectors like residential housing.
“The recently-passed Overseas Investment Amendment Act seeks to support business investment and, in particular, encourages foreign direct investment in forestry, where it is crucially needed,” David Parker said.
While he is in Sydney David Parker will also meet NZ Trade and Enterprise directors to discuss the important work they do in the region.
Tue, 25 Sep 2018 18:03:46 +1200beehive.govt.nz105650NZ students now eligible for NASA Internshipshttp://www.beehive.govt.nz/release/nz-students-now-eligible-nasa-internships
New Zealand tertiary students will be offered the chance to participate in NASA’s International Internships Programme, under an agreement between the Ministry of Business, Innovation and Employment and NASA.
“Through the programme, high-achieving students will have the opportunity to work in NASA’s best and most advanced research facilities, with access to expert mentors,” Economic Development Minister David Parker said.
“The experience could inspire someone to begin the journey to becoming an astronaut or to follow in the footsteps of great Kiwi scientist Sir William Pickering who led the successful effort to put the first US satellite in orbit.
“We thank the US for making this opportunity available to some of our best students.
“We hope this will galvanise them to think about how their skills could be applied in the space industry. That could be in areas such as Earth observation, data science, astrobiology or robotics,” David Parker said.
“Giving our future innovators, entrepreneurs and scientists opportunities to get a head-start in space-related careers will play a vital role in developing a thriving domestic industry.”
“It also strengthens New Zealand’s connection with global space networks and raises New Zealand’s profile as a location for space activities.
“New Zealand is well-positioned to become a hub for new space activities with its highly-skilled workforce and expertise in physics, energy, engineering and computer science research.”
The Agreement is accompanied by a new scholarship from the New Zealand Space Agency, which sits within the Ministry of Business, Innovation and Employment.
“The New Zealand Space Scholarship will be available to up to four successful applicants to cover the cost of participation, airfares, accommodation, and other associated expenses,” David Parker said.
U.S. Ambassador Scott Brown joined David Parker in welcoming the internship announcement.
“I’m very excited that New Zealand will be able to send their most promising students to work with leading NASA researchers. Working on the U.S.-New Zealand relationship is one of the best jobs in the universe, and this Agreement shows why.
“The NASA International Internship Programme lets us boldly go even further, giving Americans and Kiwis the chance to foster innovation, develop modern solutions to modern challenges, and advance scientific breakthroughs. The future of the U.S.-New Zealand partnership is, in fact, the future – and this agreement represents one giant leap in our extensive scientific cooperation – from Antarctic research to investments in health, and onwards to the final frontier,” Ambassador Brown said.
The New Zealand Space Agency will accept applications from 10 September and intends to provide NASA with student nominations for the June 2019 internship session.
For more information, visit the New Zealand Space Agency’s website www.mbie.govt.nz/space.
Mon, 27 Aug 2018 16:45:46 +1200beehive.govt.nz105206Applications open for Pm's business scholarshipshttp://www.beehive.govt.nz/release/applications-open-pms-business-scholarships
Applications open today for scholarships aimed at boosting the power of New Zealand’s business managers, with a change in focus from earlier years to include a wider range of Kiwi businesses.
The Prime Minister’s Business Scholarships provide an opportunity for managers to gain valuable skills and experience by undertaking world-class executive education at international business schools.
While they were previously aimed at exporters and internationalising New Zealand-based firms, the criteria have been expanded to include domestically-focused firms that can take advantage of New Zealand’s competitive advantage, such as in areas like agricultural technology.
There is also a particular focus on expanding the diversity of recipients to include more women, Maori and Pasifika people.
“These Scholarships open the door to opportunities not readily available in New Zealand, giving business leaders access to international experts, global networks and knowledge to bring home to their businesses and share with colleagues and the wider business community,” Economic Development Minister David Parker said.
“Lifting management capability in New Zealand’s businesses will help strengthen and develop the productive potential of this economy, which is a priority for the government.
“Having the people who lead our companies equipped with the best skills possible is crucial for driving greater efficiency, innovation and productivity.”
The Scholarships fund 50 per cent of the cost of overseas study at an international business school, up to a maximum value of $110,000.
Recent recipients include leaders from the IT, agriculture, electricity, technology and textile industries. Recipients attend business schools including Harvard, Stanford, Massachusetts Institute of Technology and the European Institute for Business Administration (INSEAD).
“As a small nation at the bottom of the world it is not always easy to get exposure to the world’s business learning resources and that’s why the Government is pleased to offer this opportunity,” David Parker said.
The Scholarships close at noon on 9 July 2018. To apply visit www.mbie.govt.nz/pmbs
Wed, 06 Jun 2018 16:25:54 +1200beehive.govt.nz104306New manufacturing report shows move to added valuehttp://www.beehive.govt.nz/release/new-manufacturing-report-shows-move-added-value
Key parts of manufacturing are moving beyond commodities into value-added products, a new report released today by Economic Development Minister David Parker shows.
The 150 page report, Beyond Commodities: Manufacturing into the Future, is the most comprehensive on New Zealand manufacturing to be published in a decade.
It was launched at the Manufacturer’s Forum hosted by EMA, in association with the Manufacturer’s Network and Callaghan Innovation.
“This report shows the huge diversity of manufacturing in New Zealand, from core household goods like cleaning products, to building products, furniture and steel,” Mr Parker says.
The report also identifies a number of challenges for manufacturers, including difficulty finding skilled tradespeople and a lack of scale relative to international competitors.
“The continued lack of productivity growth remains troubling and limits opportunities for development,” Mr Parker says.
“Manufacturing is crucial to boosting jobs and growing our exports, particularly where New Zealand enjoys a comparative advantage. The sector’s potential is clear and we need to devote more of the country’s resource it.”
“The Government’s Tax Working Group and reforms we are making to the Reserve Bank Act are important steps on the path to a more productive economy.”
A key finding in the report is the degree to which production and export of high-value products is starting to gain real traction. Medical equipment, pharmaceuticals and agritech machinery and systems collectively generate $1 billion of exports. Infant formula and innovative foods such as nutraceuticals are generating double digit growth.
The report, part of the Sectors Reports Series, confirms that manufacturing will continue to play a major role in the economy, particularly in the regions.
Manufacturing provides 221,000 jobs, generates $36 billion in exports, and spends $670 million on research and development.
“Manufacturing has borne the brunt of changing global dynamics and these changes have resulted in increased competition for Kiwi firms.
“However, the globalised economy has also increased opportunities for local firms to target valuable niches,” Mr Parker says.
“Value-added products can offer higher returns and efficiencies for New Zealand businesses and allow for more productive land use with a lower impact on the environment.”
The report will help provide the information government and industry needs to adapt to emerging domestic and global opportunities.
The report is available at: www.mbie.govt.nz/manufacturing
Tue, 17 Apr 2018 13:02:31 +1200beehive.govt.nz103516Agreement reached on America’s Cup venue http://www.beehive.govt.nz/release/agreement-reached-america%E2%80%99s-cup-venue
An agreement has been struck on the Auckland waterfront venue for the 36th America’s Cup, including the division of costs and the payment of a hosting fee.
Economic Development Minister David Parker, Auckland Council and Emirates Team New Zealand (ETNZ) reached agreement in principle today securing the America’s Cup defence for New Zealand in 2021.
The signed agreement is subject to approval by the Auckland Council Governing Body, which will meet on Thursday.
“I am very pleased to advise that we have succeeded in negotiating a venue on the Auckland waterfront that all New Zealanders can be proud of. It significantly reduces the intrusion into the harbour at the lowest practical cost,” Mr Parker says.
“The event will also deliver economic benefits to Auckland and the country.”
“Prime Minister Jacinda Ardern, Mayor Goff and I all stated our commitment to limiting the intrusion into the harbour, while achieving a word class venue for the Cup event, and this delivers that.
“Our work in reaching this point has seen a major cost reduction for taxpayers and Auckland ratepayers of more than $50 million, compared to other options. This is a fantastic achievement and testament to the time and effort we have invested to reach the best outcome possible,” Mr Parker says.
Mr Parker thanked ETNZ for their cooperative approach that helped achieve the final outcome.
Auckland Mayor Phil Goff said New Zealand could now look forward to hosting the event.
“It’s good for Auckland and great for Kiwis who will get to experience in person the thrill of an America’s Cup in 2021 and cheer our team on.”
“We have agreed a base configuration that is less expensive than previous options and requires a much smaller extension into the harbour. It allows the earlier removal of hazardous substance tanks from the southern part of the Point, is more straightforward to consent, will be quicker to construct and creates a positive legacy for Auckland,” Mr Goff says.
The location, known as Wynyard-Hobson, has evolved from several options on the table. It entails only about 6,600 square metre intrusion into the harbour at Hobson Wharf, compared to 9,900 square metres under the earlier Point Halsey option.
Other options had envisaged intrusions of 22,800 square metres.
“This gives ETNZ the certainty it needs to proceed with planning for the event.”
ETNZ will occupy the Viaduct Events Centre, while Luna Rossa will be offered the place on the extended Hobson Wharf. The remaining bases will be located on Wynyard Wharf.
The expected contributions are $114m from the Crown including a $40 million host contribution fee, and $98.5m from Auckland Council.
The funding agreement also sets out key financial reporting milestones, governance processes and other safeguards for the Government and Council’s investment.
The agreement details the timing of three events.
They are the America’s Cup Christmas Race December 2020 the America’s Cup Challenger Selection Series in January-February 2021 and the 36th America’s Cup match in March 2021.
A resource consent application will be lodged in early April.
Mon, 26 Mar 2018 18:25:04 +1300beehive.govt.nz103252Strong growth opportunities in the food and beverage sectorhttp://www.beehive.govt.nz/release/strong-growth-opportunities-food-and-beverage-sector
Three reports launched today by Minister for Economic Development David Parker show New Zealand’s food and beverage sector is growing quickly.
“The Food and Beverage reports highlight double digit growth across many non-traditional categories in the sector,” says Mr Parker.
“That’s great news for our economy, in particular our regions who are well placed to capitalise.
“Leading products include mānuka honey, chocolate, cherries and shellfish all showing strong growth.
“The reports highlight that authentic and natural products utilising New Zealand’s brand attributes are attracting significant price premiums, which is great news for our producers.
“It’s important we as a Government continue to support innovation in the sector while fostering the economic conditions for it to thrive,” says Mr Parker.
The reports are part of the Ministry of Business, Innovation and Employment’s Food and Beverage Information Project. They identify 51 high growth non-traditional categories with export revenue of over NZ$10 billion.
They also profile the 20 food and beverage categories that have shown very strong growth and have significant upside. Exports of these 20 categories were valued at NZ$3.64 billion in 2016 and have grown at 14 per cent a year over the past five years.
“The coalition Government is committed to expanding the economies of New Zealand’s regions,” says Mr Parker. “Reports like these are vital resource which help private enterprise, economic development agencies and officials target areas likely to provide the greatest economic benefit.”
Wed, 14 Mar 2018 15:50:30 +1300beehive.govt.nz103124Decision closer on America’s Cup venuehttp://www.beehive.govt.nz/release/decision-closer-america%E2%80%99s-cup-venue
Minister for Economic Development David Parker welcomes new developments that bring closer an agreement on the shape of a world class venue for the 36th America’s Cup event in Auckland.
“I am pleased we are closer to reaching a conclusion that we fought for, which will deliver a cheaper option with a much smaller intrusion into the harbour.
“There are still important details to work through and we are continuing to seek the lowest cost option with the smallest intrusion into the harbour, as has been our stated objective from the start.
“The greater environmental benefits of a smaller intrusion would be worth tens of millions more if appropriately valued,” Mr Parker says.
Prime Minister Jacinda Ardern, Mr Parker and Mayor Goff have stated they are committed to limiting the intrusion into the harbour, while achieving a word class venue for the Cup event.
The new option, known as Point-Halsey, has evolved from suggestions by local residents and interest group. It is the cheapest of the four put forward and envisages only a 9900 square metre extension of the Halsey St Wharf
Other options would have seen intrusions of 22,800 square metres.
The option being discussed will also bring forward the removal of tank farms on Wynyard Point and create a legacy Auckland can be proud of.
Officials are working with Emirates Team New Zealand (ETNZ) on the design and details of this fourth option, as well as other aspects of the overall event.
The new option has been described as workable by ETNZ.
Mr Parker said that in a face to face meeting in February he had assured ETNZ boss Grant Dalton that ETNZ would not be forced on to Wynyard Point and that he was assured of a prime position, saying “to the victor the spoils”.
Mr Parker believes the Point-Halsey option meets that pledge.
The four options that have been discussed are:
) The original Auckland Council option known as Wynyard Basin, for which a plan seeking consent was lodged on January 15. It envisages a base for Emirates Team New Zealand on Hobson Point with 74m extensions to both Hobson and Halsey Street wharfs. It requires 22,800 square metres of wharf extensions into the harbour.
2) The Wynyard Point "hybrid" option presented by the Government and the Council on February 13, which put more bases on Wynyard Point but which reduced from 74m to 35m an extension on Halsey Wharf, while accommodating ETNZ on Hobson. It requires 14,200 sq m of extensions into the harbour.
3) An option proposed by Emirates Team New Zealand which retains the 75m Halsey extension putting more bases on the extended Halsey Wharf, while holding Wynyard Point in reserve, with ETNZ on Hobson. It requires the same 22,800 sq m of extensions as the basin option.
4) Point-Halsey. This design utilises land on Wynyard Point and reduced to 45m the extension to Halsey Street Wharf. There would be no extension to Hobson Wharf. It provides for two double bases on Halsey, one of which will be ETNZ’s base and additional bases on Wynyard wharf as syndicates are confirmed. It requires a 9900 sq m extension into the harbour.
Mr Parker says only four double bases are now needed, rather than the six required at the time the hybrid option was announced, and this gives greater flexibility.
A consent application will be lodged for the building of bases on Wynyard Point and the existing Halsey Wharf.
That will sit alongside the council's earlier application and ensure maximum flexibility.
Option costings: (Note: All information is approximate and subject to final decisions).
(1) Wynyard Basin
(2) Wynyard Point
(3) Halsey-Hobson (ETNZ)
(4) Point-Halsey
Costs
Hobson
35
35
35
0
Halsey St Wharf
79
49
79
49
Wynyard Point
40
51
20
66
Other
21
24
17
24
Total
175
160
151
140
Wed, 14 Mar 2018 12:32:28 +1300beehive.govt.nz103116America’s Cup Village proposal offers win-win-winhttp://www.beehive.govt.nz/release/america%E2%80%99s-cup-village-proposal-offers-win-win-win
The Government and Auckland Council have today released plans for a world class America’s Cup village on Auckland’s waterfront to host the 2020-21 cup defence.
It provides for at least seven syndicate bases around two basins in the Wynyard area with provision for restaurants and bars, public viewing, and hospitality areas.
The proposal incorporates elements of the Wynyard Basin option, agreed by the council in December and publicly notified last month, and the Wynyard Point variant explored by the Government.
The Auckland Council and the Government are cooperating on all aspects of the “hybrid’ proposal including consents, which can be achieved in a similar time frame to the notified option.
Crucial to the revised village plan were negotiations between officials and Dutch company Stolthaven Terminals that will see it vacate its southern tank farm site on Wynyard Point.
We thank Stolthaven for their cooperation.
That has cleared the way for more land-based locations and reduced the need to build out into the harbour.
Economic Development Minister David Parker says the proposal is a win-win-win for all parties, reducing costs and environmental impact while offering an excellent venue for the defence.
Costs have increased across all options but the relative cost of this proposal is expected to be $15 million to $20 million less than the Basin option before putting a value on the harbour intrusion, which had also been significantly reduced.
It could have been possible to have a smaller extension of Halsey Wharf, but the Government is prepared to compromise to provide - and exceed - the number of double bases requested by Emirates Team New Zealand, Mr Parker says.
“I believe the proposal will create a legacy for Auckland and all of New Zealand – our main aim alongside creating a top class venue for Team New Zealand and the Cup defence in 2021 and, hopefully, beyond,” Mr Parker says.
As part of the plan ETNZ will be granted the prime spot at the end of Hobson Wharf in a development worth $30 million.
Prime Minister Jacinda Ardern, Mr Parker and Auckland Mayor Phil Goff have all expressed their wish to minimise the intrusion into the harbour, alongside providing a first class location, and the plan delivers on that.
By reducing the proposed extension of Halsey Wharf from 75 metres to 35 metres and altering the layout the proposal restores important sight lines lost under the prior plan.
Auckland Mayor Phil Goff said he was pleased the Council and the Government had worked collaboratively to reach a consensus.
“The Wynyard Hybrid option reduces the need for large extensions into the harbour while creating a vibrant and connected America’s Cup village that competitors and the public can enjoy,” he says.
“The America’s Cup will be fantastic for New Zealand. We want Auckland to host the cup, and Council and the Government are working with Emirates Team New Zealand to ensure that we can provide the infrastructure in a timely manner and deliver an incredible event,” says Mr Goff.
The proposal offers the added advantage of bringing forward the redevelopment of Wynyard Point in line with the Auckland Council’s longer term plans.
Mr Parker said under the plan unveiled today there was flexibility to make changes to the layout of bases on Wynyard Point if ETNZ had further concerns and was willing to engage in further discussions on those.
“We believe we have put forward plans and made changes that meet Emirate Team New Zealand’s concerns,” Mr Parker said
Mr Goff has discussed the Wynyard hybrid option with Auckland’s councillors and it will go before council’s governing body in the near future.
Agreement has not yet been reached with ETNZ on the hosting agreement and the location.
The plans can be viewed at: http://www.mbie.govt.nz/info-services/infrastructure-growth/americas-cup
Wed, 14 Feb 2018 13:00:00 +1300beehive.govt.nz102733Another milestone for New Zealand space industryhttp://www.beehive.govt.nz/release/another-milestone-new-zealand-space-industry
Minister for Economic Development David Parker has welcomed the successful second test rocket launch as another significant milestone in the development of a New Zealand space industry.
“Congratulations to the team at Rocket Lab for the successful launch of their second rocket off the Mahia Peninsula,” Mr Parker says.
“It was great to see the Still Testing rocket make orbit and successfully deploy the payloads on this second test flight.
“This launch and Rocket Lab’s presence in Auckland and on the East Coast demonstrates what New Zealand can offer for those involved in the space industry here and internationally.
“New Zealand is well positioned to support further development of the space industry. We can provide a large range of launch angles, particularly for putting space objects into low earth orbit.
“Also our new future focused regulatory regime, coupled with our natural advantage of clear skies and seas, and relatively low levels of air traffic make us an attractive location for space activity.
“Ten years ago, under the last Labour Government, Rocket Lab received its first research and development grant. It’s great to see the progress which has been made since that initial boost, said Mr Parker who visited Mission Control to watch the countdown on Saturday.
“Rocket Lab are a great example of what can be achieved through targeted research and development funding. I’m looking forward to watching Rocket Lab develop further, and also watching New Zealand’s space industry develop.
“The Government is particularly interested in advancing areas where New Zealand has existing strengths in space-based data applied to agri-technology, hazard management, oceanography and meteorology,” says Mr Parker.
A range of government agencies, led by the Ministry of Business, Innovation and Employment (MBIE), are supporting Rocket Lab’s test launch activities to ensure they are safe and secure.
Sun, 21 Jan 2018 21:06:39 +1300beehive.govt.nz102549